Many business owners and managers still think of cloud technology as primarily a resource for backing up important computer files and sensitive data. But it’s also a powerful accounting tool. Here are 7 key benefits of cloud-based accounting that can help save time, money, labor, and headaches.
#1 Reduced Workload
Generating paper, whether in the form of invoices, checks, billing statements, or financial reports, means generating additional work for someone. Those tasks include filing, copying, collating, printing, and mailing – to name just a few. That wastes time and contributes to the administrative burden as well as the routine cost of office supplies and accounting procedures.
#2 Ease of Access
A cloud-based system allows authorized users access to accounting records anytime, anywhere – across multiple devices. Is the company facing a weather-related power outage? Will it be offline while moving to a new office? With a seamless cloud-based solution the accounting systems won’t miss a beat. The cloud also supports sharing of data with key decision makers, vendors, accountants, and tax planners. Customers receive more timely statements and invoices, too, which can shorten payment cycles to boost cash flow.
#3 Robust Security
The most critical assets that any business needs to protect are those related to accounting, and in that regard cloud technology has always provided superior advantages. Advanced cloud-based accounting software offers safe and secure PCI-compliant payment options, for instance, plus safeguards such as data encryption, tokenization, and Level 3 Processing.
On-site accounting can be difficult, if not impossible, to expand and scale as a business grows. A centralized system may become obsolete just because a business opens a satellite office. Or a change of computer hardware could require a complete revamp of the accounting software. But as the business grows, the cloud’s capability expands accordingly, keeping the evolution of the accounting system one step ahead. Updates also happen automatically, to ensure best practices and uninterrupted security protocols.
#5 Centralized Invoicing, Payments, and Reports
Cloud computing offers the flexibility of simultaneous access from multiple locations, but combines and supports that ease of use with convenient centralization. Every accounting step and procedure, as well as the entire life cycle of invoicing and payment processing, happens within the centralized cloud. That makes financial reporting much simpler and easier, while saving accountants and bookkeepers time – and saving businesses money.
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#6 No Infrastructure Required
Cloud-based accounting leverages the capability of a high-performance IT infrastructure. But it delivers those powerful assets without the need for on-site IT engineers, capital investment, or even higher electricity bills. In fact, there is no need for extraneous training or additional hardware. High-quality cloud-based accounting can be implemented by simply installing and running the software. The software will update itself once it’s launched, and the provider will perform any necessary maintenance.
#7 Reduction of Human Error and Increased Goodwill
A host of annoying problems can be permanently eliminated by transitioning to a faster and more efficient cloud-based accounting system. Getting rid of the paper – and the clutter – also shrinks the potential for human error, which is such a critical feature it’s hard to calculate the value of that benefit. Plus, going paperless is better for the environment, which contributes to customer and community goodwill and the well-being of future generations. That’s priceless.